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When I showed the Coursera contract to Trace A. Urdan, an analyst at Wells Fargo Securities who focuses on education-related companies, he found it "ironic" that major universities are embracing online education when they have been dismissive of earlier efforts by for-profit companies like the University of Phoenix.

"These are two of the most arrogant types of institutions—Silicon Valley companies intersecting with these elite academic programs," he says. "Neither of them considers that anyone else has come to this place before they've arrived. They say, We're here now, so now it's sort of legitimate and for real."

And he argues that the plan relies heavily on all of the money colleges are already spending on professors and facilities. "It's a way to carve out some extra money on the top of the existing program, but it's not an alternative system that is going to solve the cost crisis of higher education," he says. "It's being subsidized by incredibly high-priced education."